AUGUST 6, 2010 -- According to a recent report by Dell'Oro Group, the worldwide service provider router market is entering a growth cycle that will see revenue increase by more than 60 percent over the next five years.
After a sharp decline in 2009 driven by the global recession, the router market is experiencing strong demand as service providers increase the capacity of networks to accommodate the rapid growth of Internet traffic, the market research firm says. Dell'Oro Group forecasts the service provider router market to reach $11.6 billion by 2014.
"Recent history shows us that service providers invest heavily in routers for their Internet Protocol, or IP, networks in conjunction with advances in router technologies," said Shin Umeda, vice president of routers research at Dell'Oro Group. "We are seeing manufacturers offering unprecedented advancements in capacity and service functionality in their latest router products. These new capabilities will give service providers the tools to better manage network traffic growth and develop new revenue streams."
The Dell'Oro Group Routers 5-Year Forecast Report provides an overview of the routers industry with tables covering service provider and enterprise router revenue, average selling prices, and unit and port shipments (by speed T1/E1, T3/E3, OC-3/STM-1, OC-12/STM-4, OC-48/STM-16, OC-192/STM-64, OC-768/STM-256, 100-Mbps Ethernet, 1-Gbps Ethernet, 10-Gbps Ethernet, 40-Gbps Ethernet, and 100-Gbps Ethernet).
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